Black files injunction to stop interference in Hollinger sale

Embattled press baron Conrad Black sought a court injunction in Ontario in a bid to stop outside meddling with a US$460 million (A$610 million) deal to sell his Hollinger Inc holding company to British twin tycoons.

The court action, initiated by two private Canadian companies controlled by Black, seeks injunctions to prevent Black's main operating company, Hollinger International Inc of Chicago, and some of its directors from interfering with the friendly takeover of Black's Canadian holding company.

Black and Hollinger International have been battling in the boardroom and the courts over the way he ran the publisher of the Chicago Sun-Times, London Telegraph and Jerusalem Post.

Hollinger International's minority shareholders are also after Black over millions of dollars of unauthorised payments to Black and his associates and management fees the shareholders have deemed as excessive.

Hollinger's other interests have included a majority shareholding in Australia's Fairfax group between 1991 and 1996.

Black's relations with other directors of the company hit a new low on Saturday when they ousted him as chairman of the board and filed a $US200 million ($A265.46 million) lawsuit seeking, among other things, more than $US86 million ($A114.15 million) from him personally.

Black's controls Hollinger Inc of Toronto, which in turn controls Hollinger International. However, he has agreed to sell Hollinger Inc to Press Holdings International, a company controlled by Sir David and Sir Frederick Barclay.

"The offer by Press Holdings International will provide substantial value to all shareholders of Hollinger Inc as well as benefiting Hollinger International by allowing the company's fine media properties to move forward without further distractions or financial uncertainty," Black said in a statement today.

"As a result, we are taking appropriate legal action to prevent any interference whatsoever with the completion of this transaction."

The notice of action filed in the Ontario Superior Court of Justice seeks a declaration from the court that the agreement with Press Holdings is "effective, valid and binding."

It also specifically seeks to prevent several Hollinger International directors - including Gordon Paris and James Thompson as well as their adviser Richard Breeden - from interfering with "the continuation and completion of the takeover bid".

Hollinger International was to hold an emergency board meeting tomorrow to discuss Black's plan to sell out to the Barclays.

It's not clear what Hollinger International's board could do to torpedo the deal or whether the US Securities and Exchange Commission would intercede as it probes alleged misconduct by Black and others.